It studies and recommends standards consistent with Sharî'ah principles to financial institutions covering the areas of banking, capital market and insurance.

[7][8] The country of its location, Malaysia, passed a special law the same year —the Islamic Financial Services Board Act 2002—giving the IFSB the usual "immunities and privileges" international organizations receive.

[11] Prominent industry experts, senior leadership of national and international institutions and thought leaders have presented their papers at the Islamic Financial Stability Forum.

The IFSB seeks to achieve its mission through the issuance, and facilitating the implementation, of global and prudential and supervisory standards and other initiatives that foster knowledge sharing and cooperation.

[12] As of June 2020[update], the 187 members of the IFSB comprise 79 regulatory and supervisory authorities, 9 international inter-governmental organisations, and 99 market players (financial institutions, professional firms, industry associations and stock exchanges) operating in 57 jurisdictions.